Director Identification Number (DIN) is a unique identification number allocated to an individual who is an existing or a potential Director of any Indian company.
The government is considering a proposal to brush up the process of DIN allotment. Under the proposal, DIN will be issued to a person only at the time of his appointment as a Director in companies provided such a person does not possess a DIN before such appointment.
Under the existing procedure, companies which are already in existence will be permitted to apply for DIN of proposed director by filing the form DIR-3 (Application for DIN). DIN’s application for the proposed first directors of new companies will be endorsed upon filing of SPICe forms and ratification of the said forms.
Certain supplementary proposals are also under deliberation as follows:
· To modify DIR-3 to permit allotment of upto 2 new DINs exclusively for ‘Producer Companies’ as SPICe provides for upto 3 new DINs.
· To temporarily suspend allocation of new DINs for Designated Partners/Partners of LLPs with effect from 26th January 2018 till 31st March 2018 to facilitate modifications in LLP eforms as a consequence of depreciation in DIR-3.
· Introduction of SPICe form for incorporation of company with effect from January 26th, 2018 - with indispensable provision for incorporating Producer Companies and condemnation of Form INC-7 for incorporation of companies.
These proposed modifications are aimed at ensuring allotment of DIN at the time of director appointment and avert unsystematic allotment of DIN to the directors and cut down trivial and outdated steps involved under DIR-3 with the objective to expedite DIN allocation process.
Research inputs by Paruchuri Baswanth Mohan
About the author :
Bhumesh Verma is a lawyer with over 2 decades of experience in advising domestic and international clients on corporate transactions (M&A, Venture Capital, Private Equity, Startups, corporate advisory, etc.) and features in "The A-List - India's Top 100 Lawyers" by India Business Law Journal. He keeps writing frequently on FDI, M&A and other corporate matters and is a guest faculty as well. He can be reached at email@example.com.